SISB shares learn hard lesson on first trading day

Singapore International School of Bangkok (SISB), the first educational business listed in Thailand, debuted on the Market for Alternative Investment (MAI) yesterday with the share price falling below the initial public offering price.

SISB shares opened the session at five baht and closed at 4.36 baht, down 16.2% from the IPO price of 5.20 baht, in trade worth 879 million baht.

It was the third instance this year of a stock closing below its IPO price after the first day of trade.

SISB chief executive Kelvin Koh said the company has strong fundamentals with sustainable income and hopes to grow with long-term investment.

SISB’s share price fell below the IPO price because of poor market sentiment. As for reports that there has been opposition from the government to the listing of international schools, Mr Koh said the company had done everything in accordance with the regulations of the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET).

He said everything was discussed beforehand with the Education Ministry, which had no restrictions or objections.

“We don’t worry if the price goes down, because we are confident in the fundamentals and intend to develop education in Thailand,” Mr Koh said.

In the event that the government attempts to collect income tax from the school, the company will accept the decision and pay the tax if it has profits from operations, he said.

In response to concerns that being listed will result in increased tuition fees as a result of the need to ensure returns to shareholders, Mr Koh said the school’s tuition fees are in accordance with Ministry of Education rules. Term fees cannot be increased by the school itself.

“SISB’s tuition fees are considered mid-level,” Mr Koh said. “If parents do not want to bring their children to our school, there are 200 other international schools as alternatives.

“The regulator is not going to take any legal action against anyone, as the company has not done anything illegal. Everything is according to procedure, and many other education institutions are now interested in raising funds on the stock exchange, looking at SISB as an example.”

He said there were no concerns about an investigation or revocation of licence as a result of the listing.

SET president Pakorn Peetathawatchai said SISB followed the listing rules for the MAI, especially regarding information disclosure.

Somphop Keerasuntonpong, managing director of Finansia Syrus Securities, SISB’s financial adviser, said objections to bringing an education business to list on the bourse likely weighed on the share price but the company is fundamentally unchanged.

“However, we must monitor the operations of the school to see whether it improves education or not, but it will take time to measure this,” Mr Somphop said.

Finance Minister Apisak Tantivorawong said his ministry has no duty to consider SISB’s listing, as it falls under the responsibility of the SET and the SEC.